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Microsoft to pursue EUK for lost stock

Software giant said to be considering legal action to reclaim stock stranded in distributor warehouses

Microsoft is rumoured to be preparing to take legal action against failed distributor Entertainment UK, a branch of the liquidated Woolworths Group, in order to acquire stock currently being held by the company's administrator to prevent it being sold off cheaply and recoup losses.

EUK, still has CDs, DVDs and videogames worth tens of millions of pounds in its warehouses, according to The Times. Under "retention of title" rules, companies can claim back their own stock if it has not been paid for as well as stock that has already been paid for in order to cover debts.

This grants companies which stand to lose millions of pounds the opportunity to recoup much of the loss if it can reallocate the stock to retailers not currently in liquidation.

Late last year it was reported that EUK owes Microsoft GBP 26 million, Nintendo around GBP 21 million and Ubisoft GBP 1.4 million.

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James Lee